The definition of Financial Independence is actually pretty simple.
In its most basic terms I would describe it as the wonderful situation where your passive income from your investments exceed your living expenses.
Digging a little deeper, financial independence means different things to different people.
Someone could feel financially independent because they pay their own bills with no help from anyone.
To someone else it could mean having no debt whatsoever, so they feel independent in that regard.
I’m going to focus here on what it means to me, and pool together some ideas on how it improves your life and makes you a happier and more fulfilled human being.
Financial Independence means many different things to me.
Primarily it means having assets that can generate the income I need to pay my bills and live life without me having to go out to work.
It sounds simple, and it is. But the difference it makes to your life is extremely profound.
When I think about it, there is only one description that sums up how I feel about it : Complete Freedom.
This is why you should bother! If for no other reason than for freedom in your life.
There’s a valuable resource in this world that you can never replace and once its gone, its gone for good. It’s your Time.
What would it mean to have an abundance of wealth, not just in dollars, but measured in Time?
Just imagine how you could live your life without the usual time restraints associated with your everyday working life. For some idea, here’s what we get up to.
Time to play with your kids, or work on your hobbies. Time to spend with your spouse or travel. The freedom to learn, explore subjects and industries or to really immerse yourself in whatever you want to do. Are you feeling motivated yet?
The freedom you gain from putting yourself in a strong financial position is a beautiful thing, but sadly it is rare. A distant dream for those of us still stuck on the treadmill.
For me, the desire for freedom was so strong, it forced me to take a very different path to most young people.
It’s my belief and my hope that I can help people achieve freedom in their life and this blog is my weapon of choice for doing this.
Now you’ve decided you want a piece of this financial independence action for yourself, let’s find out what I can bring to the table to steer you on your journey….
My thoughts on ‘The Great Taking’. An idea that the masses will lose untold amounts of wealth in the next financial crash, due to a deliberate plan by mysterious figures.
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For me, Financial Independence means security. I grew up with a very insecure life and little financial education. I have been fiercely independent from a young age and self employed since 20 but only just recently learned about FIRE the last few years. The idea of a passive income that I don’t have to actually have to trade my time for was the selling point for me.
Thanks for sharing Lin.
I think many of us really want to get our time back, while building a strong financial foundation to live the rest of our lives with to give us extra control and security.
Have just come across your blog Dave and it’s awesome. Thanks again for taking the time and effort to share your thoughts with us.
Thanks for the comment Linc – really appreciate it!
I resonate strongly with FI and the freedom it allows, even the freedom to keep working! I am lucky that I still love my ‘work’ and can imagine never retiring completely. It probably helps that I am self-employed and can choose when I work and how much. But this has only been possible by practicing the sorts of habits you preach and reaching FI at an early age. The irony is that the less I’ve needed to work, the more I’ve enjoyed it (probably because it’s been more on my terms).
Great comment burrow!
Fantastic position to be in mate, well done 🙂
It’s absolutely true that when you don’t need to work, the more excited you are to get up and do productive things. That completely caught me off guard as it’s totally counter-intuitive!